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Altico Capital plans to invest up to Rs 1,000 Crore in Bengaluru realty market
Clearwater Capital Partners-backed non-banking finance company Altico Capital India is planning to invest up to Rs 1,000 crore Bengaluru property market this financial year in addition to its existing exposure, said a top company official.
Altico Capital has invested Rs 200 crore in Legacy Group's portfolio of total 14 projects spread over 4 million sq ft across north and central Bengaluru. With this, Altico's total investment in Bengaluru has touched Rs 600 crore in the last 12 months. Altico has concluded similar deals against project portfolios, including investments in Century Real Estate and Unishire Group in Bengaluru market over the last 12 months.
"Despite some slowdown in sales as well as regulatory hurdles in recent past, we remain bullish on Bangalore market due to continued growth in commercial absorption coupled with good demand for mid income products which are competitively priced, all of which indicate towards continued robustness of this market. We are evaluating multiple opportunities across residential and commercial office sector and plan to deploy another Rs. 750 - 1,000 crores in Bangalore during this financial year" said Sanjay Grewal, CEO, Altico Capital.
Bangalore market has recently seen a string of investments from private equity players as well as non-banking finance companies including Piramal Capital, KKR, Apollo, Kotak Realty etc. in both residential as well as commercial projects.
Legacy Group will be using the money, to be received in tranches, to refinance some existing lenders and fund construction of projects, Altico Capital said in a release. These projects are at various stages of execution including few that are at late stage nearing completion, providing multiple and diversified sources of cash flows for debt servicing.
Legacy Group, promoted by B H Krishnamurthy, Sanjay Shenoy and Rakesh Prabhu, has delivered over a million square feet with another 4-5 million sq ft under various stages of execution.
"The product offering, mix of late stage and under construction projects located at prominent and well established micro locations in Bangalore apart from Legacy's premium quality and demonstrated timely execution track record were key reasons for Altico's investment with the Group." said Sanjay Grewal, CEO, Altico Capital.
Altico, also backed by Varde Partners and Abu Dhabi Investment Council has been an actively lending to real estate developers. In the last 12 months, it has invested total Rs 2,000 across several transactions including Mumbai-based Radius Developers, co invest facility to Century developers along with Piramal and NCR based Lotus Greens amongst others.